Key Highlights & Outlook
Revenues in 2Q21 are expected to be $11.1M, a year-over-year increase of 96%
Strong revenue growth was driven by the onboarding of new clients in recent months and growing existing customer’s business successfully
Adjusted EBITDA in 2Q21 is expected to be $1.3M versus a $(0.76M) loss in 2Q20, reflecting robust topline growth
Operating profit in 2Q21 is expected to be $0.6M versus a $(1.44M) loss in 2Q20
Zoomd maintains its 2021 revenue growth guidance of 30% to 40%, reflecting the strong post-pandemic market recovery, the on-boarding of new clients, the launch of new product lines, and strategic M&A activity.
VANCOUVER, BRITISH COLUMBIA, July 26, 2021 – Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary Zoomd Ltd. (collectively, “Zoomd” or the “Company”), the marketing tech (MarTech) user-acquisition and engagement platform, today announced preliminary 2Q21 results. Revenues in 2Q21 are expected to be $11.1M, a year-over-year increase of 96%. This represents the largest single-quarter revenue generation in the Company’s history. Strong revenue growth was driven by the onboarding of new clients in recent months, growing existing accounts and the Company’s expansion into growth geographies such as Latin America and Asia. Adjusted EBITDA in 2Q21 is expected to be $1.3M versus a $(0.76M) loss in 2Q20, reflecting strong topline growth. Operating profit in 2Q21 is expected to be $0.6M versus a $(1.44M) loss in 2Q20.
“We are excited to return to strong revenue growth” said Ofer Eitan, Zoomd’s CEO, adding “over the last six months we have been successful in acquiring new customers in emerging industries such as fintech, gaming and E-commerce and in addition, our legacy clients are increasing their advertising budgets, as they are seeing great results with our platform. Our clients are adopting our newly released self-serve products, as it allows them the ability and autonomy to manage their advertising campaigns in real time. In addition, we now have our geographical footprint into Asia and Latin America. The visibility into our organic growth in the upcoming months, combined with our integration of the Performance Revenues acquisition and current M&A discussions, lead us to maintain our 2021 revenue growth guidance of 30% to 40%.”
Zoomd expects to release the 2Q21 financial results in August 2021.
Zoomd (TSXV: ZOMD, OTC: ZMDTF), founded in 2012 and began trading on the TSX Venture Exchange in September 2019, offers a site search engine to publishers, and a mobile app user-acquisition platform, integrated with a majority of global digital media, to advertisers. The platform unifies more than 600 media sources into one unified dashboard. Offering advertisers, a user acquisition control center for managing all new customer acquisition campaigns using a single platform. By unifying all these media sources onto a single platform, Zoomd saves advertisers significant resources that would otherwise be spent consolidating data sources, thereby maximizing data collection and data insights while minimizing the resources spent on the exercise. Further, Zoomd is a performance-based platform that allows advertisers to advertise to the relevant target audiences using a key performance indicator-algorithm that is focused on achieving the advertisers’ goals and targets.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Information regarding the Company’s future growth prospect and the preliminary unaudited financial results contained in this press release may constitute forward-looking-information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The financial estimates provided in this press release is provided to provide early guidance on the second quarter financial performance of the Company and readers are cautioned that this information may not be appropriate for any other purpose. In preparing the financial estimates, the Company completed an initial review of operations for the quarter ended June 30, 2021, however actual results may differ materially from the financial estimates provided in this press release as the financial outlook has not been audited or reviewed. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this press release, including with respect to any future growth, is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
CAUTION REGARDING FINANCIAL ESTIMATES
The financial estimates set forth above are based on an initial review of the Company’s operations for the quarter ended June 30, 2021 and are subject to change. The Company’s independent registered public accounting firm, Brightman Almagor Zohar & Co. (Deloitte Member Firm), has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company’s results for any future period.
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to “Adjusted EBITDA” which is a non-IFRS financial measure that does not have a standardized meaning prescribed by IFRS. The Company’s presentation of this preliminary financial measure may not be comparable to similarly titled measures used by other companies. This preliminary financial measure is intended to provide additional information to investors concerning the Company’s estimated results. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, as adjusted for share-based payments, and is a measure of a company’s operating performance. Essentially, it’s a way to evaluate a company’s performance without having to factor in financing decisions, accounting decisions or tax environments. The following table (all in $US thousands) shows the Company’s Non-IFRS measure (Adjusted EBITDA) reconciled to operating profit for the indicated periods:
|in $US thousands||Q2-2020||Q2-2021|
|Operating profit (loss)||(1,440)||600|
|Depreciation and amortization||613||642|
|Cost of share-based payments||67||58|
Management uses this non-IFRS measure as a key metric in the evaluation of the Company’s performance and the consolidated financial results. The Company believes Adjusted EBITDA is useful to investors in their assessment of the operating performance and the valuation of the Company. However, non-IFRS financial measures are not prepared in accordance with IFRS, and the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS. The references in this press release to Adjusted EBITDA are forward-looking information about prospective financial performance and readers are cautioned that this information may not be appropriate for other purposes.
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